ECB Governing Council member Francois Villeroy de Galhau spoke on French radio BFM Business today, expressing that current market expectations for interest rate cuts seem “rather reasonable.”
Markets are currently pricing in nearly two ECB rate cuts for the remainder of the year, likely occurring in September and December, with around five cuts anticipated by the end of next year.
Villeroy de Galhau affirmed ECB’s stance on inflation, stating, “Overall, we are ‘on track’ with our inflation target and forecast of 2% next year.” He further emphasized the commitment to this target, noting, “Barring any shocks, this is more than a forecast, it’s a commitment.”
